Japan"s Foreign Ministry said the demands were groundless and “absolutely cannot be accepted."
"The captain"s detention and investigation were “an appropriate and calm response according to our nation"s laws," he said.
Sources say this tension has already affected business ties between the intertwined economies, the world"s second— and third—largest.
Japanese sources blasted officials for the captain"s release as “a political decision that put the mending of relations as a priority."
“Needless to say, the Senkaku islands are part of Japan"s territory. The government must continue to assert this view both domestically and abroad," it said.
Meanwhile, the US praised Japan's decision to release the captain on Friday, Sep 24 and hopes the decision will ease tensions between the two longtime Asian rivals.
However, Japanese authorities said they wouldn"t officially close the case, leaving room for some ambiguity that would allow both countries to save face.